SBTi Corporate Net-Zero Standard V2.0

V2.0 is a full rewrite — a shift from ambition to implementation. The mission is unchanged (net-zero by 2050 or sooner, aligned to 1.5°C; 11,000+ companies have validated targets), but the architecture is new. Three things to hold in your head:

A three-part framework.

(1) Set and deliver science-based reduction targets;

(2) take Ongoing Emissions Responsibility (OER) for the emissions you haven't yet cut;

(3) neutralize residual emissions at net-zero.

The iron rule survives. Carbon credits never count toward Scope 1/2/3 targets, and are never netted from the inventory C43.1 C26.2. Progress is measured on the physical GHG inventory alone. Removal projects can only be used for neutralization C26 fn.48, and ex-ante (not-yet-realized) tonnes can't be claimed C26.2d.

Net-zero is now optional. The backbone is rolling 5-year near-term targets; an overarching net-zero target is a choice, not a requirement Table 1 C17. Targets are pursued on a best-efforts basis with transparent reporting on barriers.

1 · Net-zero governance

Board-level sign-off on targets C1. Every company maintains a transition plan covering actions, timeframes, assumptions and dependencies, and a path to net-zero C2; Category A discloses it within 15 months of validation, reviewed at least every 5 years.

2 · Target base year assessment

A rolling target base year — the most recent year with comprehensive data, not a fixed historical year C4 — so ambition re-anchors to current emissions each cycle. Full GHG inventory across all Kyoto gases C5. Land, bioenergy and removals (FLAG) are accounted separately, per the GHG Protocol Land Sector & Removals Standard C5.5. Emissions-intensive activities (≥5% of Scope 3) identified C6. Limited assurance required for Category A C7.

3 · Target setting

Near-term targets cover a 5-year period C9. Scope 1: absolute reduction, sector intensity, or asset-transition C10. Scope 2: low-carbon-electricity alignment or absolute reduction, with hourly-matching reporting for big loads C12. Scope 3 (required for Category A): cover all categories ≥5%; choose absolute reduction, supplier/customer alignment, or category-specific targets; limited justified exclusions allowed C14 C15. Net-zero targets (optional) reduce to ~residual levels then neutralize C17. FLAG targets set separately C9.8.

4 · Target implementation

A new implementation hierarchy: act first at the activity level (cut at source) → then within activity pools (shared systems — grids, supply sheds; may use market instruments like EACs, mass-balance and book-and-claim, including "landscape or other agricultural interventions within a supply shed") → then sector-level actions where structurally constrained C21. Strict integrity criteria on actions, projects and instruments: activity-matching, conservative ex-post quantification, additionality, no double-counting, system-level impact C25–C28. Crucially, excluded from target implementation: ex-ante/unrealized reductions or removals, credits used for OER, and credits sold to a third party C26.2.

5 · Reporting & assessing progress

Annual progress reporting C36; an end-of-cycle assessment (independently assured for Category A) C37. Best-efforts: a company that deployed its levers and was transparent about barriers can keep progressing within the framework. Claims rules: emissions-reduction claims must come from the physical inventory; activity-pool/sector actions support only "system contribution" claims C37.10.

6 · Ongoing Emissions Responsibility

The carbon-credit chapter — covered in full below.

This is the part that matters most for project developers. It sits in Chapter 6 (OER) plus the Chapter 4 integrity rules.

Integrity bar for what you support C42

• Documented due diligence; do no harm — human rights, biodiversity, and the rights of Indigenous Peoples and local communities (the basis for FPIC); avoid carbon lock-in; transparency and benefit-sharing.
• Verified mitigation: conservative, ex-post quantification; additionality; reversal-risk safeguards (monitor, address, compensate); independent accredited assurance; permanent retirement at claim.

The post-2035 mandate — flagged "illustrative" C45

From 2035, Category A companies must support eligible removals (avoidance excluded) covering 1% → 100% of ongoing Scope 1–3 by their net-zero year C45.1. Section 6.5 explicitly calls this requirement illustrative — it "sets the intention" and "will be reviewed in the next major revision (Version 3)" before it takes effect. Treat the percentages as direction, not locked rules.

Durability is gas-matching, not a quota C45.4 C46.2

A "phased-in durability" ramp: long-lived removals ≥10% of the covered emissions attributable to long-lived GHGs in 2035, rising linearly to 100% by net-zero C45.4. At net-zero C46.2, residual long-lived GHGs (fossil CO₂, N₂O) must be neutralized with long-lived removals; only the short-lived-GHG residuals (e.g. methane) stay flexible. Scope 1 is direct; Scope 3 can be shared with written agreements; Article 6 host-country authorization is reported C46.6.

The door SBTi left open C45.4 fn.75

The standard commits to a Call for Evidence on whether shorter-lived (nature) removals can deliver climate-equivalent permanence and neutralize long-lived GHGs "through contractual, financial, or stewardship mechanisms." So the role of high-integrity, well-buffered nature past 2035 is genuinely still being designed.

• Right side of the line. ARR is a removal; the 2035 mandate is removals-only. Avoidance (REDD+, cookstoves) is out of the mandate — it stays eligible only in the voluntary OER program.
• Timing is the opportunity. Mandatory removal demand ramps from 2035; a forest financed today matures into exactly that window.
• But position honestly. The durable-share bar rises every year, and at net-zero fossil-CO₂ residuals need durable removals. Sell ARR as near-term removal supply + OER contribution, not as a permanent fix for someone's fossil emissions.
• Ex-post, financed forward. Only realized, verified tonnes are claimable C26.2d; forwards/offtakes are the way to fund the 10–20-year lead time.
• Integrity is the moat. The C42 bar (additionality, do-no-harm/FPIC, reversal management, independent verification) rewards exactly the high-integrity, community-first model.
• Adjacent channel. "Insetting" via activity pools — landscape/agricultural interventions within a supply shed C21.2 C25 — is a separate, target-eligible route worth a dedicated look.

• 11 Jun 2026V2.0 published (final).
• 1 Feb 2027V2.0 effective; validation portal opens Q1 2027; public OER declaration at every validation.
• End-2027Version 1 closes for new target setting.
• 2028Next-cycle (2030–2035) target setting under V2.0 begins.
• 2035Removals become mandatory for Category A (≥10% durable share) — subject to V3 review.
• ≤ 2050Net-zero year: 100% coverage; all residuals neutralized, durability-matched.